Tax credit misery continues for thousands of Gordon residents

12.00.00pm UTC (GMT +0000) Wed 23rd May 2007

Failures in the tax credit system have caused 3,600 errors in Gordon

Families in Gordon are continuing to suffer because of the maladministration of the tax credit system, new figures reveal.

According to HM Customs and Revenue over a quarter of local people receiving tax credits were overpaid. Of the 9,400 families receiving awards, 3,600 errors were made with 1,000 people underpaid a total of £600,000 and 2,600 people being overpaid a total of £1.9million.

The Gordon MP commented:

"Once again, another report has shown that the Government is still letting down those local families on low incomes through errors caused by its over-complicated tax credit system."

"The many constituents who have contacted me to seek assistance on tax credit issues are tired of Government promises to reform the system. Any payments received surely carry an element of nervousness as recipients cannot be sure whether the HMCR will be calling to try and claw overpayments back."

The Liberal Democrats have published a five-point plan to reform fundamentally the tax credit system and introduce greater stability and fairness. One of the key measures they are proposing is an independent right of appeal, to prevent some of the worst cases of gross unfairness.

Mr Bruce added:

"It is staggering that £9 billion has been wrongly paid out in tax credits in the past three years. This is a Treasury flagship policy which has damaged the confidence of many low-income families who rely on tax credits in addition to wasting taxpayers' money on a monumental scale."

"Before he officially moves next door into Number 10, Mr Brown must ensure his current house at Number 11 is in order and sort out the tax credit mess by reforming the system before he becomes Prime Minister."